Returns the modified internal rate of return for a series of periodic cash flows.
Syntax:
MIRR( values:Range or Array, finance_rate:Number, reinvest_rate:Number )
where:
values | is an array (or a range of cells) containing numbers representing payments (negative numbers) and receipts (positive numbers) occurring at regular periods. |
finance_rate | is the interest rate you pay; |
reinvest_rate | is the interest rate you receive on reinvested cash. |
This function considers both the cost of the investment and the interest received on reinvestment of the cash receipts.
Example:
If you borrowed £120,000 to set up a business, and reinvested income of £39,000, £30,000, and £21,000,
you should enter these figures in four cells (say B1:B4
).
Interest paid on the load was 10% and interest received on investments 12%.
The formula would be:
MIRR(B1:B4, 0.10, 0.12)
and the rate of return calculated would be 0.04804
.